Inflation Iceland 1994
Average inflation: 1.6%
Current Inflation
Inflation is low at 1.6%, below the ECB target of 2%.
Peak and Trough
The highest inflation was in January at 3.2%. The lowest inflation was in October at 0.0%.
- Highest month
- January: 3.2%
- Lowest month
- October: 0.0%
- Difference
- 3.2 percentage points
- Months with data
- 12 of 12
Category Insights
The highest price increase was in Food and non-alcoholic beverages with an average of -2.2%. The lowest price increase was in Food and non-alcoholic beverages with an average of -2.2%.
- Highest increase
- Food and non-alcoholic beverages: -2.2%
- Lowest increase
- Food and non-alcoholic beverages: -2.2%
Historical Context
Current inflation is 4.9% lower than the 5-year average of 6.5%. This approaches the lowest level since records began (1.6% in 1994).
- 5-year average
- 6.5%
- 10-year average
- 8.8%
- All-time high (1989)
- 20.7%
- All-time low (1994)
- 1.6%
Trend
Inflation shows a downward trend. Compared to 1993, inflation has fallen by +2.5 percentage point.
- Change vs. previous year
- -2.5 percentage points
- Largest monthly swing
- November: -5.9 percentage points
ECB Target
Inflation is 0.4% below the ECB target of 2.0%. Too low inflation may indicate economic weakness.
Purchasing Power
At this inflation rate, purchasing power gradually decreases. The impact on daily expenses is relatively limited.
What you could buy for €100 this year will cost approximately €101.60 next year at this inflation rate.
Multi-year trend
Monthly figures 1994
Inflation by category
Inflation differs per product group. Click on a category for the historical trend.
Month overview
| Month | Inflation | Difference vs. 1993 |
|---|---|---|
| January | 3.2% | +0.8 |
| February | 2.6% | -0.4 |
| March | 2.6% | -0.4 |
| April | 2.4% | -0.9 |
| May | 2.1% | -1.5 |
| June | 2.4% | -0.7 |
| July | 1.6% | -2.3 |
| August | 0.7% | -4.1 |
| September | 0.7% | -4.5 |
| October | 0.0% | -5.8 |
| November | 0.0% | -5.9 |
| December | 0.5% | -4.2 |
| Average | 1.6% |
Data source
Data from OECD. Last updated: 17/12/2025.